Question: Problem 1 4 - 6 4 ( LO 1 4 - 6 ) [ The following information applies to the questions displayed below. ] Rita

Problem 14-64(LO 14-6)
[The following information applies to the questions displayed below.]
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,720. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses.
Real property taxes$1,660Interest on home mortgage5,190Operating expenses of home830Depreciation1,636
Also, assume that, not counting the sole proprietorship, Ritas AGI is $61,200.
Assume Ritas consulting business generated $15,300 in gross income. (Leave no answer blank. Enter zero if applicable.)
a. What is Ritas home office deduction for the current year?
b. What would Ritas home office deduction be if her business generated $10,300 of gross income instead of $15,300?(Answer for both the actual expense method and the simplified method.)
c. Given the original facts, what is Ritas AGI for the year?

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